Finance
Russian oil exports crippled by drone attacks and severe weather, limiting gains from soaring prices
Published by Global Banking & Finance Review®
Posted on March 3, 2026
3 min readLast updated: March 3, 2026
Quick Summary
Days of Ukrainian drone strikes and brutal winter storms have forced Russia’s Novorossiysk Sheskharis terminal to halt oil loadings, while icy conditions and seizure of shadow‑fleet tankers have further constrained exports, limiting gains from surging global crude prices.
Drone Attacks and Weather Cripple Russian Oil Exports Despite Price Surge
Impact of Recent Events on Russian Oil Exports
March 3 (Reuters) - Russia has been unable to capitalize on this week's surge in global crude prices, as days of Ukrainian drone attacks and harsh winter storms have sharply curtailed its capacity to export oil, industry sources said.
Drone Attacks Disrupt Key Oil Terminals
Russia's Sheskharis oil terminal in Novorossiysk port suspended oil loadings on Monday after a Ukrainian drone attack left a fuel terminal ablaze and damaged dozens of buildings, Russian and Ukrainian officials and three trade sources said.
Global Oil Prices Surge Amid Geopolitical Tensions
Crude oil benchmarks rose about 8% on Tuesday, soaring for a third session as the U.S.-Israeli conflict with Iran widens, disrupting fuel shipments and heightening fears of further Middle East oil and gas supply disruption.
Budget Deficit Worsens Due to Revenue Shortfalls
Russia's federal budget deficit has been rising because of shortfalls in oil and gas revenue that make up nearly a quarter of budget proceeds.
Operational Challenges at Novorossiysk Terminal
Terminal Shutdown and Export Limitations
NOVOROSSIYSK TERMINAL STILL SHUT
Russian Urals oil prices in Baltic ports rose to $51.6 per barrel on Monday, the latest LSEG data showed, with traders expecting further gains on Tuesday.
Yet Russian exporters have been unable to respond and boost shipments as Ukrainian drone strikes and severe weather have disrupted operations at key facilities, traders said.
The Sheskharis oil terminal, slated to load some 500,000 barrels per day of oil this month, remained shut on Tuesday, and it was not clear when loadings would resume.
One trading source said he expected Sheskharis to restart loadings by March 5-6 at the earliest.
Russia's main oil pipeline operator, Transneft, and the Novorossiysk port authority did not immediately respond to requests for comment.
Weather and Geopolitical Factors Further Hamper Exports
Icy Conditions Limit Baltic Port Operations
ICY CONDITIONS HAMPER DIVERSION OF CRUDE TO PORTS
Exporters were also unable to divert more crude to the Baltic ports of Primorsk and Ust-Luga, where severe icy conditions have sharply reduced loading capacity, traders said.
Seizure of Shadow Fleet Tankers
European authorities have also stepped up the seizure of so-called "shadow fleet" tankers used for Russian oil, adding further complications. Such tankers operate with opaque ownership and lax safety standards.
Limited Options for Rerouting Crude
Options to reroute crude through the Caspian Pipeline Consortium (CPC) pipeline are limited, as it faces weather-related delays and much of its capacity is used by Kazakhstan, whose Tengiz field is recovering output.
Disruptions in Druzhba Pipeline Flows
Flows through the Druzhba pipeline—supplying Hungary and Slovakia—remained halted. The two countries have blamed Ukraine for the suspension, while Kyiv says the pipeline was damaged by Russia and cannot operate.
Far East Exports Remain Strong
Still, in the Far East, Russian oil exports are near record highs, with Kozmino port expected to load about 1 million barrels per day in March, traders said.
(Reuters reporters; Editing by Bernadette Baum)
Key Takeaways
- •Ukrainian drone attack on Sheskharis terminal disrupted planned 500,000 bpd throughput and remains shut with loadings not expected until March 5–6.
- •Severe winter ice has impaired Baltic loading capacity at Primorsk and Ust‑Luga, while “shadow fleet” tanker seizures and occlusions slowed rerouting of exports.
- •CPC pipeline options are limited by weather and Kazakh usage, Druzhba remains halted, though Far East exports via Kozmino near record levels.
Frequently Asked Questions about Russian oil exports crippled by drone attacks and severe weather, limiting gains from soaring prices
1Why are Russian oil exports currently limited?
Russian oil exports are limited due to Ukrainian drone attacks and severe winter weather disrupting key export terminals and loading operations.
2Which Russian oil terminal was affected by drone attacks?
The Sheskharis oil terminal in Novorossiysk was suspended after a Ukrainian drone attack caused a fire and structural damage.
3How has severe weather impacted Russian oil exports?
Icy conditions have reduced loading capacity at Baltic ports, making it difficult to redirect crude exports from disrupted terminals.
4Are Russian oil exporters benefiting from the rise in global crude prices?
No, despite a surge in global crude prices, export capacity is sharply curtailed, limiting Russia's ability to capitalize on higher prices.
5What alternative export routes are available for Russian oil?
Options to reroute crude through the Caspian Pipeline Consortium are limited, while Baltic ports and Druzhba pipeline face weather and operational issues.
